Food industry turnover rises on stronger export demand

The food industry recorded another increase in turnover in the third quarter. The growth rate was lower than in the first two quarters, yet still clearly positive. Export played an important role in this development, according to recent CBS figures.

Turnover in the third quarter was 7.1 percent higher than in the same period last year. In the first and second quarter, turnover grew by 8.8 and 9.4 percent respectively. Export increased by 8.8 percent in the third quarter. Domestic buyers also purchased more, with growth of 4.9 percent. September was the strongest month of the quarter, with total turnover rising by 10 percent. Export increased by 11.9 percent that month, while domestic sales rose by 7.8 percent.

Clear differences in price developments

Average selling prices were 3 percent higher in the third quarter compared with a year earlier. Prices for domestic buyers changed very little, increasing by 0.8 percent. Foreign buyers paid more, with an increase of 4.5 percent.

Price developments varied across the sector. The dairy industry recorded the largest price increase at 5.8 percent, followed by the fish processing industry at 5.7 percent. Slaughterhouses and the meat products industry registered an increase of 3.7 percent. The bakery and pastry industry saw prices rise by 1 percent, while the oils and fats industry recorded an increase of 0.3 percent. Two branches saw declines instead: the milling industry dropped by 5.2 percent and the vegetable and fruit processing industry decreased by 1.8 percent.

Bankruptcies and expectations for the fourth quarter

Ten companies in the food industry went bankrupt in the third quarter, three of which were active in the bakery and pastry industry. At the start of the fourth quarter, entrepreneurs were generally positive about their turnover expectations. There were 13.1 percent more optimistic than pessimistic entrepreneurs. A net 4.3 percent expected selling prices in the fourth quarter to be higher than in the third.